Potato Chip Solutions produces and sells farm equipment and sorting systems for businesses near the Holland Marsh in Ontario. The company offers a 60-day, all equipment and labour-and an extra 90 -day, parts-only-warranty on all of its products. The company had the following transactions in 2019:

Required 1. Journalize the above transactions.
2. Show the appropriate financial statement presentation for all liabilities.

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Jan. 31 31 Feb. 4 7 28 28 Sales for the month totalled $350,000 (not including HST), of which 95 percent were on credit. The company collects 13 percent HST on all sales and estimates its warranty costs at 2 percent of sales. Based on last year's property tax assessment, the company estimated that the property taxes for the year would be $114,000 (6 percent of last year's $1,900,000 assessed value). Recorded the estimated property taxes for the month; credit Property Taxes Payable. Completed repair work for a customer. The software ($3,000) and labour ($3,250 of wages) were all covered under the warranty. Remitted the appropriate HST for the month of January (the company had paid $15,610 HST on purchases in January). Recorded the estimated property taxes for the month of February. Sales for the month totalled $325,000 (not including HST), of which 90 percent were on credit. The company estimates its warranty costs at 2 percent of sales.